Ravens Owner Art Modell "has agreed to relinquish his
franchise to a new investor as soon as 2004," according to
Jon Morgan of the Baltimore SUN, who writes that a tentative
deal was reached by Modell last Friday to sell a 49% stake
in the team to MD business exec Stephen Bisciotti for $275M.
Sources close to the talks note that the price "includes an
option enabling Bisciotti to buy the rest of the team's
shares in four years for an additional $325 million,"
putting the Ravens' value at about $600M. Bisciotti, who
did not reveal details of the deal, said yesterday in an
interview with the SUN that he "intends to invoke his option
to become the team's sole owner." The deal will give him
the option to acquire the other 51% stake in the team
"anytime between" 2004 and 2006. If he doesn't exercise the
option, Modell "would remain in control." Bisciotti, who is
39, said that he "began contacting intermediaries,"
including Legg Mason Sports Managing Dir John Moag, about
three weeks ago and "clicked" when he met with Modell. One
source noted that the deal includes a clause that "provides
for payments to [Ravens President] David Modell if he is
discharged within the first two years of Bisciotti's
majority ownership." Bisciotti still must be approved by
the NFL's Finance Committee and team owners, but sources
said that they foresee "relatively smooth sailing for
Bisciotti." Bisciotti is currently working with Bank of
America on financing the deal, and could borrow the $275M
initial payment because minority owners in the league "face
no borrowing limits" (Baltimore SUN, 12/20).
WHO IS HE? Bisciotti started the MD-based technical
staffing firm Aerotek in '83, and the company currently has
estimated annual revenues of $1B. Bisciotti currently owns
about 40% of Aerotek (Baltimore SUN, 12/20).
RAVENS FLYING HIGH? In Baltimore, Ken Rosenthal writes
that the deal will allow the Ravens to "operate like a team
with the fifth-highest revenue in the NFL, rather than one
living from one national television payment to the next.
Art Modell's debt will be gone, kaput, erased -- and, in
four years, Modell almost certainly will ge gone too,
removing the Cleveland taint that hangs over this franchise"
(Baltimore SUN, 12/20). CNN/SI's Peter King: "[Modell] has
wanted to sell to basically a silent partner ... [in order
to] pass the team on to his son, David. ... The key question
is now -- this is not going to be a silent partner, this is
going to be a guy who eventually will take over the whole
ownership reigns of the Ravens" ("NFL Preview," 12/19).
